An Assessment of the Financial Feasibility of an OTEC Ecopark: A Case Study at Cozumel Island

Jessica Guadalupe Tobal-Cupul, Erika Paola Garduño-Ruiz, Emiliano Gorr-Pozzi, Jorge Olmedo-González, Emily Diane Martínez, Andrés Rosales, Dulce Daniela Navarro-Moreno, Jonathan Emmanuel Benítez-Gallardo, Fabiola García-Vega, Michelle Wang, Santiago Zamora-Castillo, Yandy Rodríguez-Cueto, Graciela Rivera, Alejandro García-Huante, José A. Zertuche-González, Estela Cerezo-Acevedo and Rodolfo Silva
Additional contact information
Jessica Guadalupe Tobal-Cupul: Department of Basic Sciences and Engineering, Universidad del Caribe, Cancun 77528, Mexico
Erika Paola Garduño-Ruiz: Instituto de Ingeniería, Ciudad Universitaria, Circuito Exterior S/N, Coyoacán, Mexico City 04510, Mexico
Emiliano Gorr-Pozzi: Instituto de Investigaciones Oceanológicas, Universidad Autónoma de Baja California, Ensenada 22870, Mexico
Jorge Olmedo-González: Laboratorio de Electroquímica, Instituto Politécnico Nacional-ESIQIE, UPALM, GAM, Mexico City 07738, Mexico
Emily Diane Martínez: Thayer School of Engineering at Dartmouth, Hanover, NH 03755, USA
Andrés Rosales: Thayer School of Engineering at Dartmouth, Hanover, NH 03755, USA
Dulce Daniela Navarro-Moreno: Instituto de Ingeniería, Ciudad Universitaria, Circuito Exterior S/N, Coyoacán, Mexico City 04510, Mexico
Jonathan Emmanuel Benítez-Gallardo: Instituto de Ingeniería, Ciudad Universitaria, Circuito Exterior S/N, Coyoacán, Mexico City 04510, Mexico
Fabiola García-Vega: Instituto de Ingeniería, Ciudad Universitaria, Circuito Exterior S/N, Coyoacán, Mexico City 04510, Mexico
Michelle Wang: Thayer School of Engineering at Dartmouth, Hanover, NH 03755, USA
Santiago Zamora-Castillo: Dartmouth College, Hanover, NH 03755, USA
Yandy Rodríguez-Cueto: Instituto de Ingeniería, Ciudad Universitaria, Circuito Exterior S/N, Coyoacán, Mexico City 04510, Mexico
Graciela Rivera: Instituto de Ingeniería, Ciudad Universitaria, Circuito Exterior S/N, Coyoacán, Mexico City 04510, Mexico
Alejandro García-Huante: Instituto de Ingeniería, Ciudad Universitaria, Circuito Exterior S/N, Coyoacán, Mexico City 04510, Mexico
José A. Zertuche-González: Instituto de Investigaciones Oceanológicas, Universidad Autónoma de Baja California, Ensenada 22870, Mexico
Estela Cerezo-Acevedo: Department of Basic Sciences and Engineering, Universidad del Caribe, Cancun 77528, Mexico
Rodolfo Silva: Instituto de Ingeniería, Ciudad Universitaria, Circuito Exterior S/N, Coyoacán, Mexico City 04510, Mexico

Sustainability, 2022, vol. 14, issue 8, 1-28

Abstract: The aim of this article is to show how an OTEC Ecopark could provide comprehensive, sustainable, and quality products that satisfy the diverse needs of coastal communities in Mexico. An offshore 60 MW hybrid Ocean Thermal Energy Conversion (OTEC) plant is proposed, which will provide products that will not only fulfill the water, energy, and food needs of the coastal communities, but also energize the local blue economy. An assessment of the financial feasibility of the plant as well as a comparative analysis against other forms of energy generation was carried out. The methodology section includes a market description, literature review for the technical design, methods for mitigating socio-environmental risks, and an analysis of operational risks. To determine financial feasibility, the CAPEX, OPEX and annual revenue, including the sale of CELs and carbon credits, were evaluated. The Internal Rate of Return suggests that the system would pay for itself in year 5 of the system’s 30-year life. The methodology used for this case study, with site-specific adaptations, can be applied to other coastal communities across the globe.

Keywords: OTEC Ecopark; financial feasibility; offshore aquaculture; Levelized Cost of Energy; capacity factor (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
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